Aggregation

We have handled a number of disputes over aggregation: where multiple claims are treated as one. An insurer’s approach may depend on the question whether their limit of cover is likely to be exceeded: if it is, they may be better to contend for separate claims, in order to profit from multiple payments of the policy excess.

The Supreme Court delivered judgment on 22 March 2017 in AIG Europe Limited v Woodman [2017] UKSC 18 on the meaning of the aggregation clause in the Minimum Terms and Conditions, under which multiple claims from similar or related causes may be subject to one policy limit, removing the layers of complexity which had been introduced in the courts below. Firms must take account of these provisions when deciding how much cover to buy. We are currently advising one firm facing multiple claims where the effect of the decision may leave £40-50m uninsured.